Global primary energy consumption is forecast to grow by 35% over the next 20 years driven by population growth coupled with progressive social development.

Current demand is met 90% by hydrocarbon fuels—i.e. oil, gas and coal—with the balance supplied by nuclear, hydro and renewables. Opinion is split as to whether peak oil has, or is, about to occur, however it is clear that the forecast energy deficit cannot be met from that source. Coal is plentiful but environmentally unpopular, as is nuclear power.

Therefore, in the absence of a technological revolution that will propel energy production from renewables at an unprecedented rate, gas is an important part of the answer to the energy gap in the medium and long term.

Since first production on the North West Shelf in the mid-1980s until today, Australia has built up an export capacity of 17mTPA of LNG, which when added to the Pluto production represents about 10% of current global LNG capacity. The combined offshore and coal seam reserves of Western Australian and Queensland respectively give the opportunity to increase production and help to meet that global energy gap for many decades to come.

Australia is once again the lucky country.

While the Australian economy has and will continue to benefit greatly from the tax revenues generated from that production, little has been done to equip Australian industry to participate fully in the domestic investment of LNG developments. Far less has been done to develop exportable skills to participate in the industry on a global basis.

Norway produced its first oil in 1971—18 years after Australia—and began major gas exports about the same time. A comparison of the capacity and capability of its oil and gas service industry with that of Australia is stark.

The platform and opportunity exists for Australia to create many thousands of highly skilled jobs and a sustainable domestic and export oil and gas service industry but it will require vision and long-term thinking.

If there’s more of the same, the lucky country could eventually run out of luck.